Fastly, Inc. has released its 10-K report, detailing its operations as an edge cloud platform provider for processing, serving, and securing customer applications globally. The company offers a range of services, including Compute@Edge, network services, content delivery network, streaming solutions, and edge security solutions. Fastly's revenue for the years ended December 31, 2023, and 2022, was $506.0 million and $432.7 million, respectively, reflecting a 17% increase. The company incurred a net loss of $133.1 million and $190.8 million in the years ended December 31, 2023, and 2022, respectively.
Fastly focuses on expanding its customer base and increasing its customers' usage of its platform, with the 10 largest customers generating an aggregate of 37% and 35% of its revenue in the trailing 12 months ended December 31, 2023, and 2022, respectively. The company's revenue growth from existing customers, as measured by Dollar-Based Net Expansion Rate (DBNER), Net Retention Rate (NRR), and Last-Twelve Months Net Retention Rate (LTM NRR), demonstrates the continued expansion of its customers' use of the platform. The 2019 cohort, for example, increased its revenue by 5.5 times in fiscal 2021 and has grown at approximately an 88% Compound Annual Growth Rate (CAGR) over the next four years from fiscal 2020 to fiscal 2023.
Fastly generates the majority of its revenue from charging customers based on their usage of its platform, with a substantial majority of its revenue coming from customers with negotiated contracts. The company also focuses on winning new customers, expanding into new markets, and international expansion to attract customers outside of the United States. However, international expansion adds complexity and cost to the business, requiring the company to expand its sales and marketing capabilities outside of the United States and manage administrative aspects of a global organization.
The market shrugged off these announcements by moving the company's shares 0.1% to a price of $14.46. For more information, read the company's full 10-K submission here.
